Tax Credits & IOUs

IOUs

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If DOR fails to collect enough money to pay Members their saleries, they may offer IOUs. These work similarly to bonds. When IOUs are offered, Member can purchase them. Then, the following tax year, the Member can claim their IOUs. By claiming their IOUs, they can reduce or even be refunded.

It is important to know that you must file your tax return in order to claim your IOUs.

Deductions

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Members can reduce how much they owe to DOR if they purchased or did one of the following during the tax year:

Purchased an electric toothbrush with a two-minute timer built in ($10);

Attended college as a full-time student ($75);

Own a small business and are employed as defined in Sec. 9(a)(2) ($25);

Purchased a hybrid or electric vehicle ($55); and

Volunteered for at 10 hours per week ($60).